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tv   Fast Money  CNBC  June 20, 2013 5:00pm-6:01pm EDT

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percent. that isn't a bad thing. many on this program predicted this like larry fink, but he also remains a bull long term. we've been here before with past five percent declines being met with buyers before. is this a buying opportunity. traders want to see a washout before getting back in. hard to tell which way this. the stork market is where yield is. thanks for being with me. i will see you tomorrow. fast money begins right now. stay with us. >> live from the nasdaq market site in new york city's time square. i'm melissa lee. let's get straight to the big story. a blip or something bigger. we saw the biggest selloff of 2013 today. the dow closing down 354 points. the ten year yield hitting a 22-month high. the gold tumbling to a two and a half year low.
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the vix spiking below 24 percent. is this pull back the start of something much bigger, a bigger correction? yes or no? >> it most certainly is. i've been in this camp for a while. if you look around the world at other assets classes and you had your head out of the sand the last couple months volatility has ruled the day here. let me sell something. the u.s. what we've seen here in the safe haven trade, what we've seen in the s&p 500 in particular, it's been very orderly until today. to me we've gone from an environment where people have been buying dips in the u.s., u.s. investors,i the world over. we had our first close below that 50 day moving average that we have bounced on four times. it's a massive resistance level now. i would tell you that when we get back above, we may get back
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to 1610, maybe tomorrow morning, i think you sell these rallies, people are going to start taking profits in the u.s. and they may start looking to emerging markets that have gotten slammed. >> they're going to take profits from the u.s. and go into emerging markets? >> a lot of people have been long s&p and short emerging markets. you can see a reversion of that. >> is there a safe place to hide today, dr. j.? >> in the uvxy. that's a volatility place. that's if you wanted the height that was something that worked out well. for the long i was buying today and i was buying some of the home builders. i was buying toll brothers, ryeland, spf standard. the reasons i was buying these is they basically erased two weeks' worth of rally in 24 hours. i'll take the other side of that bet 99 times out of 100.
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how this plays out, we could see 1610 or whatever tomorrow but there's nobody betting on a short term move like that. all the paper we saw was betting on a september time frame. of course that can change in 24 hours. tomorrow they could be betting on a short time move to the upside. right now they were positioning bullishly out in september which tells me they expect a lot of either sideways or another hit before they commit capital in the short term. >> so your trade is for what sort of time frame? >> the time frame right now that i'm in is probably a week which is a long time for me. that's forever. but i think you'll see people switching as you get more and more of a flush here. it was the fifth busiest day in options today over 32 million options changed hands and a lot of panic in volatility. >> asset classes across the board sold off. there's no place to go. karen, were you going when
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others were scared? >> yeah. i think this -- we talked about two weeks ago or may 22, whatever it is when bernanke put the first hint out there and that spooked us. now it's not a hint. it's very much out there, tapering ending by 2014 if the company improves. i know they're taking a punch bowl away but only in the event where the economy improves. so we were buying stock today that if the economy improves that's where i want to be like a macy's. with the volatility index spike is as high and hard as it did i sold some of our mdny puts. >> you're telling me you believe ben bernanke forecasting of the improving economy when you look at the world over -- >> if it doesn't improve he's not going to taper. >> then you'll still have qe. isn't that the condition under which stocks rose? >> yes but it seems to me that
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growth is decelerating significantly and i don't know how the fed can stand here and say that things are going to look better in the second half. >> i'm saying if they don't they're not going to taper. so i think that this reaction is not surprising that there was a very significant reaction. but i think it's a little bit overdone. >> guy? >> hi there. technical damage in the market is there. karen mentioned may 2 for different reasons on may 22 we saw an outside day in the s&p. we've discussed it at length since. the low today was 1608. remember that number. earlier this week we made a high of 1654. right now where we stand today our lower is lower than last week's low. instead of having an outside day we can have an outside week which is more powerful than an outside day. what do i think is going to happen tomorrow? we're going to push up towards 1608, 1610 level that dan talked
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about. do bulls pull it out and push us through 1620? >> not a chance. >> how can you say not a chance? >> i'm telling you if we close below 1608 tomorrow the technical damage is severe. 1570 comes into play which was the highest we saw back in 07. if we break there we have an entirely different conversation about the structural damage to the s&p? >> can i tell you why i have sat here and argued with people for months -- >> and the market is up 12%. >> let me tell you something. if you make mistakes up here at the all time highs these are the mistakes that cost you for years getting back to high water marks and stuff like that. i don't manage money like you do for fancy investors. i trade. i see a lot of people who are longer term investors who are very comfortable with that fed put. let me tell you what the chairman -- the way i see it -- just did. he just made a lot of volatility in the way that they have been
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managing this whole process to get us automatout of here. you said what if the economy starts to suck again. do you think the markets will treat that well? my goodness i would have a meltdown. >> is there scenario where they leave that in place and those are the conditions under which the markets rally if they pull it away then that means the economy got better. >> every qe 1, 2, 3, we knew they were going to be there. what the they tell us yesterday? who knows. this does not set up with when you have a global economy acting the way it does. >> i think the way karen is playing it is how i'm playing it so i'm taking the other side. i sold off almost all of my eem today. pete is still in there long and strong. i don't have the fortitude to
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stick with it like this kid. as karen said, one of the testifiest trades is the one you have to make. that's when you have to close your eyes and get out of your puts because they exploded today. whether it was puts on eem or puts on the vix, i sold a lot of uvxy. >> i'm annoyed by karen. you want to turn the tv on, open up the financial press, you're going to have people telling you to buy every dip. for the last four years we have had draw downs of ten percent. a lot of people do what they see on tv or what read or whatever. i'm not in the business of picking out long term -- >> you said if you have done that for four years you would have done very well to buy the dip for the last four years. all of a sudden you're 100% certain what the market is going to do. >> i am not right for two days. let me tell you something. people like to buy tops because
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people are really bullish at the tops. >> you don't know anybody that's really bullish right now. >> all of you guys said you want to buy the dip here. >> that doesn't mean i'm bullish. i'm buying the stuff that was slaughtered. staples. >> karen is longer. >> i come from a different way. i am not going to be able to pick the bottom. that's great if you think you can. i can buy companies that i understand their business, have fundamental cash flow, priced atrack tifl. in the long term am i going to be happy to have it, i think i am. >> you're looking at these losses and wondering what should i do, go with dan nathan or with karen. what would you say? >> remember, there's no rule that says if you get out of things you can't get back into
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things. understand i think too many times people feel i can't sell it's coming down too much. well, the market has rallied in the last four years. you can get out and wait to play another day. if you are concerned at home you have every right to be. dan makes great points as does karen and john. technically if this market believe me closes below 1608 tomorrow i believe it's broken. 1570 comes into play then everybody is saying what do i do. if you don't think you can sleep over the weekend there's nothing wrong with pairing down positions because you can get back in. i can make a very intelligent argument that says you don't have to buy another stock until we close above 1700 in the s&p. that's extreme but given what we saw on may 22 i think it makes sense. i'm trying to narrow the playing field and say if we can close above 1608 tomorrow things will be okay for tomorrow. if it's below it's dicey. >> let's look at futures here in
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the after hour session to see how we might be preparing to open in tomorrow's session. we are seeing them fairly stable here. we'll keep checking throughout the show. gold getting taken to the wood shed today. we will hear from one fund manager who once ran the largest gold fund behind john paulson's, what he's doing on the massive selloff and why one top rated technician says there's absolutely nothing to buy in this market right now. stay tuned. tdd# 1-800-345-2550 [ trader ] when i'm trading, i'm so into it, tdd# 1-800-345-2550 hours can go by before i realize tdd# 1-800-345-2550 that i haven't even looked away from my screen. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 that kind of focus... tdd# 1-800-345-2550 that's what i have when i trade. tdd# 1-800-345-2550 ♪ tdd# 1-800-345-2550 and the streetsmart edge trading platform tdd# 1-800-345-2550 from charles schwab helps me keep an eye tdd# 1-800-345-2550 on what's really important to me. tdd# 1-800-345-2550 it's packed with tools that help me work my strategies, tdd# 1-800-345-2550 spot patterns and find opportunities more easily.
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>> welcome back. time for our top three trades for tomorrow. home builders getting hammered. the sector down five percent. we should note that home builders have dropped nearly ten percent in the last month alone. dr. j.? >> most of that coming today in the last 24 hours. ryeland down ten percent. toll brothers, throw in spf, anything in the staples space, anything with exposure to
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interest rates. i was buying those today and buying uvxy against them. that was the hedge and that exploded. that was the same trade that karen was doing because they blew up in a good way. >> shares of cme group clocking in as a rare winner rocketing to levels not seen since october. >> everything they trade is everything that's moving right now. if you believe rates are going to start to get crazy here, it makes sense to own this. bk is going to call in and talk about interest rates. if you believe that rates are going back down cme is a really good short here at 78 bucks. if you believe rates are going to explode here cme is going a lot higher. i'm in the rates going lower camp. >> fast money trader, bk sees the next dip as a buying
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opportunity. he joins us on the fast line to break down the trade. what did you do today? >> i bought the tlt. i listened to you guys earlier in the show and i'm with dan. i think we're looking at an environment where we're in a low growth low inflation naer environment. a lot of what happened today had to do with emerging markets, with china. this is a global phenomenon that ben bernanke can't control. if he tapers or not i don't know the difference between 85 and $60 billion. he's still buying bonds. for me it's a great risk reward. use 109 as your stock. >> 109 is where you get out? >> yes. i bought it this morning. obviously i needed -- it was a hairy ride this morning but at the end of the day it came back. again, you're talking about 2.4% yield in a low growth low inflation environment. that's not an environment where yields go higher. >> right. brian, it's karen. let me ask you something about what is happening in china and inter bank lending.
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how dicey is that situation in your view? >> here's the thing. it's self-inflicted. the chinese decided that they wanted to control their banking system. they believe that they have the ability to control markets. the problem is markets have a different function going on. so for right now they can always pump liquidity in the short term. it's probably okay. but you want to watch copper. if you see it below $3, a lot of these financing deals have copper tie up in them. that's when you get the big bursts and that's when i get worried about china and we almost saw it today. >> i'm in the beakers camp. i didn't think yields would go where we are now. but i think that as things get dicey across the planet, the flight to safety, the flight to quality will manifest itself in money coming back to the u.s. bond market. i still think we're going to see ten year rates well below two
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percent. it's painful now. i get it. but as things unravel and you're seeing it today, i think the money funds its way back to the bond market. we'll see. i think jeff gunlock made comments. >> he did. beakers, last comments. >> you also have the phenomenon that the fed said they own 30% of the bonds. that's creating a shortage in inter bank market. you have the potential for a short squeeze. >> beakers, good to speak with you. let's bring it back to the broad based selloff in the street today. doug cast joins us now on the fast line. doug, good to speak with you. >> hi, guys. >> you're still net short here, correct? >> yes. can i say one thing about what you guys -- you had an interesting conversation about certainly. i think the only thing certainly is a lack of certainty, guy.
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if we consider that 65 or 70% of the daily trading activity has nothing to do with fundamental investing, it's high frequency trading, slicing and dicing etf. so i think it's hard to read anything into one, two weeks' action. >> i've never been a certainty guy. >> i would be interested in hearing when you and pete say. it tends to render technical analyses more difficulty would think. >> listen, dogma creates certainty. one thing that's certainly about the financial markets is there is no sefrnt. i say all the time you can't be dog mattic in your views. we can disagree, but i'll sort of go to the mattress on this one. an outside week will be bearish as that may 22 outside day was as well. >> doug, it's dan. i'm the one who said i think a rally above 1610 in the next couple trading gets sold.
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i most certainly think it does. to guy's point, what are you looking at here that tells you that we're going to see new highs any time soon? >> i'm short, my friend. look, i think the markets have been like a heroin addict with this qe. now we're tapering ahead of the market. it's soon to become a methadone addict. the problem is too frequently methadone addicts fall back into addiction. what happens in the last couple days is the market is justify believe worried that the doctor's prescription to place that patient on methadone but in the fed's case the prescription is tapering are basically the wrong anti-doets and represent policy risk. it's the monetary policy shoulders that have been bearing the responsibilities for growth but our political leaders are
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insert. i'm more in dan's camp and guy's camp about rates. i don't believe that the economy is strong enough to sustain itself unless we have this heroin or easy money for some time to come. what concerns me about the market fundamentally is that if the stock market continues to drop, it's almost sufficiently fulfilling. trickle down no longer works. we have a consumer based economy that's vulnerable because we're at a five-year low on savings rate. refinancing is evaporating. that shores up household cash flows and as bill gross at pimco treated to the, monthly payments for the average selling home in the country on a 30-year mortgage is up 20% since the beginning of the year and up 25% since september. so the question is what should investors pay for disappointing earnings, structural headwinds to growth and a global economy which is so dependent on easy
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money. cooperman thought yesterday that 16 times is right. the other lee, tomorrow lee says 17 times. i have long thought that the real risk to the market is that we trade under the 50-year average which is 15 times now. we've quickly gone back to 15 times. >> doug, i got a question. you're net short now. what will it take for you to turn that net short into a neutral or a bullish bias? what do you need to see, a level, a series of data points? >> i'm sort of like the fed. i'm data dependent. i'm concerned as dan is and bk is that the fed's forecast -- what the market is saying is the fed forecast of three percent or better real gdp in the second half and into 2014 is silly. we know that according to goldman sachs the tracking number on the second quarter is about 1.8% plus real gdp down from 2.4% in the first quarter.
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there's nothing that i see that shows an acceleration in economic growth, especially given the deceleration and growth in china, the stagnation in europe. we have a weakening earnings picture. if you have two percent or less real gdp that means nominal growth is only about three, three and a quarter. that doesn't give corporations pricing power. i am concerned that the earnings outlook or consensus earning expectations are too opt mistake. >> doug, thank you. >> let's check in on shares of oracle because they are moving lower. revenues coming in light of estimates. john ford joins us now with the very latest. john, rough after hour session here. >> yes indeed. they just gave guidance and it's not particularly rosie though some people may have expected less. constant currency and total
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growth to three to six percent. wall street was looking for 4.6. the range is zero to 8%. the street wants 7.2 and hardware of negative six to plus two currency and the consensus is for 3.6. eps nongap is the range of 56 to 59 cents. the street was looking for 58 so it's below. >> john ford, thanks so much. is this a buying opportunity? >> given the back drop of the s&p, go back and look at the november low on oracle. this quarter is not good. especially given what they said in last quarter how that was one off. it's not a one off. we're going to have a monster
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volume day tomorrow. if we see the bounce that some think we might get, then oracle around 30 bucks looks really p interesting, really quick for a trade. everything is in the context of for trade. in terms of risk reward the it gets interesting around $30. >> i think there's much better places to be. when you have two executive misses there's something going wrong. they're talking about -- we haven't seen the release but i'm sure they're talking about global headwinds and it spending. look aat what sysco reported last month. it's a much better buy than oracle. if it goes to that 30 level if you go back long term back to 2010, 25 is the number. that's the level where it's going to go if you have another miss. >> 2950. i agree with guy. >> with both the dow and s&p dropping over two percent the vix spiking to 20 and gold
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tumbling to a 20 year low is there anywhere to hide and are the charts pointing to a bigger lower. one person says now is the time to postpone all new buying. stay tuned. let's get the ball rolling. in parks across the country, families are coming together to play, stay active, and enjoy the outdoors. and for the last four summers, coca-cola has asked america to choose its favorite park through our coca-cola parks contest. winning parks can receive a grant of up to $100,000.
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and more time doing paperwork. ink from chase. so you can. >> let's go off the charts with carter from oppenheimer. we want to see where we should expect to head in the coming weeks. let's start with the s&p. >> to put it in context, two pull backs or corrections. once your dune more than five percent history shows you don't stop there. the mean decline -- >> down from the few to the low? >> yes.
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back to 1927 there have been 205, 500 plus corrections. so we're down now 6.2% which would be much shall oh,er than both the median or the mean so the presumption is more. let's look at the charts. here's a daily chart of the s&p. the trend has been very well defined. for now the first time in seven months we have broken below the trend. putting in context it's only six percent. so the next chart also shows the important channel but in this case it's very well defined since the 09 low. typically when you get to the top you want to fade it. at the bottom you want to buy it. we've just touched the top and the implications are we have some sort of move towards the bottom to give you more perspective. so another way you can look at it -- >> is this gap about a two percent decline?
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>> yes. we are down from the high 6.25. the median is 8.2. we're only down six. that's if it's garden variety or average. what if it's quite a bit more? what's important is each time you dip you come back to median tops. if we come back to this high you're talking about 1475 on the s&p and that would be 12% from high to low immediately. it would be the exact mean decline. >> a couple weeks ago we were focused on the transport and what we were signaling to us. what do you see now and do you think that's a good predictor? >> they are around important part of the market. they're a respected part of technical analysis. this five year chart looks at
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what happened. a breakout. after you do this kind of thing often you get a fall back. so this pivot point implies another five or six percent. we have a level, level, level, a breakout and you often fall back to the level from which you broke out. that's meaningful decline from here. >> let's bottom this line. there are a lot of numbers here going on. for the s&p 500 you expect a further e decline. if we go garden variety that could mean another three, four or five% downside. >> yes. think about the ent molg of the word correction. it implies something is incorrect, too steep, too far. you've got to take breaks in life. you want the correction. you don't want it just to stop after a couple of percent. >> i like it when ent molg is combined with technical
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analysis. dan, what do you make of carter's prediction that you are bound for another two, three, four five percent decline? >> he had me at garden variety. we made new highs every year for the last few years, 52 week highs but we do get ten percent selloffs. we retest those previous levels and come back in. there's nothing good going on in the world anywhere right now. if the only reason you were buying stocks was because of the fed, that reason isn't even there anymore. if you were bullish it makes sense to have a ten percent pull back and get back in. >> markets are not a buy according to your analyses. are they a short? >> i would retain my short. you should have some. >> you should have some shorts in this market? >> yes. >> carter braxton. thank you very much. time for a special edition of
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pops and drops. a drop for hewlett-packard down three percent. >> it's been one of the performers. so what were people selling today? they of course went after the home builders and staples and utilities. hewlett-packard was next on their list and they hit it pretty dpood. >> drop for walt disney. >> i'm long. i like it. >> drop for fedex. >> they reported yesterday goldman sachs downgraded it yesterday to a hold. this has a ton of emerging markets exposure. that's where they're going to get their growth. to me you want to see it bottom out below 90. >> black rock a drop. >> the high in 2010 was 240. we broke down from there. resistance becomes supported. it will find its way to 240.
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if you need to trade it that's where you are 240. >> a sea of red across the board. seems like the perfect time to hear from mark faber. shockwaves after spiking 24% alone. what else might the vix be telling us? back in two. before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage their wealth, one whose insights, solutions and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪
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>> welcome back. we have we are live in new york city times square. first up, china, the factory outlook weakening today and helping to weigh on the markets here in the u.s. dr. j., what's the play? >> i am holding off on china. emerging markets as i said, i took some profits on the emerging markets through eem puts. pete was sticking with it. i am thinking we're going to get a bounce. >> micron, shares posting a five year high earlier in the week while posting a beat in the first quarter earnings yesterday. >> good report. i think it was expecting the stocks up 110%. remember these guys make memory
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chips that go into pcs. they reported last night the stock was down 50 cents or so today. i would love to see it open up. i did buy some july 13 puts. >> you're going to short it at the open. this is the anti-regis trade. >> sorry. >> lastly back to one sector getting slammed, big banks, bank of america, jpmorgan and gold closing low. anyone buying the dips? >> i haven't but i will. of the three, i like that bank america has the most u.s. exposure of the overall exposure. i think we'll see currency hits. dan talked about that. that would be my choice. >> can i go back to you because before the fed, before that meeting, you said to buy the banks. that would be your way to play. >> and it was dead wrong. i thought we would get another 20 points higher in the s&p. we got about 10 to 12.
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the banks would rally. i was wrong without question. look at two financial institutions that hung in there until late. u.s. bank corps was green today, not bad considering it's around all time high. pru was really green. i'm not saying you have to plow in tomorrow but take note of overperforming stocks. >> i hate to rain on your parade. euro stock is down. we will see this sort of volatility come to our banks. they acted very well today on a relative basis but i do like your call on bank america. >> let's get to one of the street's biggest contrarian's out there. mark faber editor of the boom gloom and doom report. great to have you with us.
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>> it's my pleasure. >> last time you were here you said that the new highs in the markets cannot be trusted which proved to be a good call. at this point do you see further downside to the s&p 500? >> yes, i see further downside not because of the fed statements, but because like always they hedged their bets in the sense that the tapering off would not necessarily stop mr. bernanke said if the economy does not improve along the lines that we expect, we will provide additional support. so i think the markets are worried about something else. first of all, interest rates have been rising now for a year. the ten-year treasury note and 30-year treasury bond yield bottomed out last july. so we've been in an uptrend in
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interest rates. then, as i maintained for a long time, the chinese economy is much weaker than the official statistics suggest. my view would be that at the present time the chinese economy at the very best, the very best, is growing at something like four percent per an um and without a huge credit expansion there would be no growth at all. the other emerging economies are essential flat. singapore has relatively honest statistics tissues like other developed countries and oh, emerging economies. >> you've been quoted as saying that you are personally buying gold as well as gold stocks. when you look at the selloff across the board, across asset
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classes including gold, does that make you question the performance of this particular asset class given the market environment? >> yes, correct. technically commodities look horrible. in particular, also industrial commodities, precious metals also look bad. but some technical factors would suggest that we are approaching at least an intermediate low because the commercials which are essentially hedgers, they are people that produce gold and so continuously hedge at the present time they have an extremely low short exposure. in other words, basically they're accumulating gold. secondly, gold is close to $1300 compared to, say, $700 in 2008,
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the conditions in the mining industry are horrible. the exploration companies are running out of money, and industry conditions are worse than they were in 2008. so i think that a lot of supply that potentially would have come to the markets through new exploration will simply not be there. in addition to that, i think that in emerging economies, selling funds, central banks and individuals who continue to accumulate gold, physical gold. >> we're going to have to leave it there. thanks for calling in. we appreciate your analyses today. mark faber, editor of the gloom, boom and doom report. dr. j. i know you've been in the market buying gold. why? >> when there's blood in the streets. isn't that what warren buffett says. you buy when there's panic, not
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yu for ya. i thought we would test april lows by the end of june. it came earlier. i thought it would be the end of next week, but we did get that belowoff, that 90 point drop per ounce in gold. i see a lot more upside than downside. i like it. i sold puts today. i'm looking to buy the physical tomorrow or monday. >> guy, how do you feel about gold especially when there's no inflation on the horizon? >> i said for a while i never thought i was inflation proof. i thought it was the new currency. i've been wrong for $300 easy. i always said it ends badly. i don't think it's ending to doc's point and mr. faber's point you got to be in it. when everything flushes itself out the last things that will be standing are u.s. treasuries and the gold market. as painful and it's been and
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probably going to be tonight you could see crazy things happen in the asia market. at a certain point that's where people are going to find value. again, i've been wrong for a while now. >> straight ahead even facebook couldn't escape the selloff on the street sdpriet announcing the instra gam the stock closing down two percent. why is dr. j. sticking buy it. the cutler report will be going a full hour of coverage on this market selloff. be sure to tune in to that. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ to accept less and less in the name of style and sophistication.
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>> photo sharing app insta gram. the stock is down more than ten percent in 2013. is facebook chief enough to trend. john, for the bulls and karen for the bears. >> facebook announced their big thing that people had been working on. they unveiled it today and it was a vine-like product, a video product for insta fwram. that's positive. that they're doing is following what jack dorsi, the guy who founded twitter, jack is brilliant with vine, brilliant with hashtags and they're
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following him with both of those. the hashtags are going to be huge because they can make money from these posts. additionally you're going to see zuckerberg doing this deal with samsung. that will be huge for facebook. this will be a one of a kind deal. i don't think anybody else has such a deal and that makes facebook a stronger competitor going forward. >> karen? >> if you want to be in facebook, to me it seems like you have to really believe in their ability to monetize mobile. i can't help but come to how about someone who with monetize mobile that trades at half the valuation of facebook with a much more seasoned management team. of course i'm talking about google. i'd rather be in that. we've seen desktop growth slow to a crawl here. this is an issue not only for them but it is an issue. the third thing is a little more qualitative in that 39 analysts who cover it in 2013, of those 39, one has a sell, just one. so i sort of think, all right,
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if you want to rely on a story where analysts get on board, that's already happened. i wouldn't short it, but i certainly wouldn't be long. >> let's get the verdict from the options pits. brian, what are you seeing on facebook? >> i got to go with karen on this. she makes a great point about google versus facebook. it's a stock where the fear factor options traders are betting higher on google. we've seen negative bets on facebook. basically the trader betting that facebook trades lower here. i liked the stock before i had bullish bets on it but it fell apart shortly after earnings. i took those bets off. a lot of negative towards the stock. facebook is probably one of those at least short term. maybe they recover after the stock trade is lower but downward pressure is here. >> more optioned action tomorrow
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at 5:30 p.m. tweet us at fast money, hashtag bull or bear. coming up next hour in mad money, we've got david wenner of b and g. you will not want to miss it. tweets, we'll trade them, next. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
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>> you tweeted we traded so let's get to your tweets to our crew today. guy, will there be a rush back into high dividend domestic names as a safety play? >> this has been in a four year uptread. the stock has done everything right. the dividend is five percent. karen can probably speak to it. you're not buying for dividends but because it's going higher. >> what's a good entry point into google? >> google is one of the premiere large cap tech stocks out there. 16% of the market cap in cash.
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it's expected to grow earnings at 16%. it's the name to own. obviously the stock is up 25% for the year. it's up 750 in a month and a half. you want to buy closer to 800. >> views on qualcomm? >> prices of chips for smart phones are going to be coming down. it's the competition between media tech and qualcomm that are driving these prices down. the article digitech was saying could be as much as 20%. that means it could soften into the mid 50s. i would hold off. >> tomorrow's massive selloff when we come right back. [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making
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>> who won the street fight on facebook? the bear won, miss karen finerman takes home the victory tonight. no hard feelings here. dr. j., final trade? >> biomayoren. i like the stock. >> micron too far too fast. >> karen? >> wait to see the open but probably buy in macy's.
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>> guy? >> rest in peace. james gandolfini. against a 29 and a half [ music playing ] >> my mission is simple, to make you money. i'm here to level the playing field for un all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends, i want to save you money. my job is to teach you and educate you through this one. call me, 1-800-743-cnbc. don't worry the cavalry, it will come. maybe not until tomorrow. this is not custard's last stand. there is

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